Everything you need to know about influencer marketing

If you’ve been active on any social media platform lately, you’ve likely interacted with influencers. You may have seen a fitness influencer promoting athletic wear, or a beauty blogger recommending a new skincare product. Influencers are individuals who leverage their personal influence or expertise on specific topics to persuade their target audience to take certain actions.

While the term “influencer” is relatively new, the concept of personal influence is not. People have long been influenced by celebrity endorsements or product usage. However, with the increased daily use of digital platforms, brands have capitalized on partnerships with real influencers to seamlessly integrate their business messages into the content we consume.

What is influencer marketing?

Influencer marketing occurs when a company collaborates with influential individuals on social media platforms like Instagram, TikTok, or YouTube. This is a form of social media marketing and is often included in a company’s overall digital marketing plan.

Influencer marketing can be an effective way to reach a target audience. Influencers are known and trusted figures in the eyes of their followers, which increases the likelihood of their audience trusting the brand and products being promoted. By partnering with influencers, the company can leverage the positive reputation these personalities have built with their audience.

Types of Influencers

Currently, companies are turning to interact with “everyday” influencers who provide authentic content and interact personally with their audience, and who are expected to achieve strong returns on investment (ROI).

Everyday influencers are generally classified into different categories based on the number of their followers, which may include:

  1. Micro-Influencers: 10,000 followers or less 
  2. Mid-Tier Influencers: 10,000-50,000 followers 
  3. Macro-Influencers: 50,000-500,000 followers 
  4. Mega-Influencers: 500,000-1 million followers 
  5. Mega-Macro Influencers: more than 1 million followers 

This detail allows companies to choose the appropriate level of collaboration and ensure maximum benefit from their influencer marketing campaigns.

Is Influencer Marketing Suitable for Your Business?

Since 2016, the global influencer marketing industry has seen significant growth, with its value increasing from $1.7 billion to estimated at $21.1 billion in 2023.

According to the 2023 Influencer Marketing Hub report, more than 83% of the surveyed marketers consider influencer marketing to be effective. This shows that working with influencers could be a profitable opportunity if it aligns with your brand identity.

However, to reap the benefits of influencer marketing, you need to consider a few factors:

1. Does it align with the target demographics and social platforms used by the influencers?

2. Do your brand’s products or services fall under the popular categories for influence?

3. Can you afford the costs associated with influencer marketing?

Let’s take a deeper look at how to answer each of these questions.

Influencer Marketing and the Target Audience

Not all audience segments interact the same way on social media, as the audience composition varies across different platforms.

You need to consider the identity of your target audience, the platforms they are likely to use, and their potential affinity for engaging with influencers on social media.

According to the 2023 Influencer Marketing Hub report, the majority of Instagram users are between 25 and 34 years old, while TikTok users tend to be in the 13 to 24 age range.

The report also indicates that over a fifth of YouTube video views come from males aged 25 to 34.

Conducting a comprehensive market analysis can help you determine how your target audience uses social media, and if the age group targeted by your brand aligns with any of these segments, influencer marketing may be an effective choice.

Types of Products or Services in Influencer Marketing

In addition to demographic fit and platform affinity, you also need to consider how well your brand aligns with the common specialized niches of influencers. Some of the major influencer marketing niches include:

  1. Lifestyle
  2. Fashion
  3. Beauty and Health 
  4. Celebrities and Entertainment 
  5. Sports

This reinforces your influencer marketing strategy and ensures you maximize the engagement with your brand’s target audiences.

The Cost of Influencer Marketing

Finally, you need to consider your budget for influencer marketing.

According to reports from Influencer Marketing Hub, 43% of brands allocate less than $10,000 annually to execute influencer marketing campaigns, while 11% spend over $500,000.

The costs of collaborating with each influencer vary greatly depending on the industry and the influencer’s own level of fame. 

It is recommended to reach out to influencers initially to get cost estimates before making formal inquiries. 

Providing free products can be a good trade-off when the product or service is evaluated at a higher level than the influencer’s usual average, provided there is prior agreement on this.

Without prior agreement, there may not be a strong commitment on their part to create content around your brand.